Flipkart Minutes eyes profitability, higher order value via broader product mix
Flipkart Minutes
, the
quick commerce
arm of Walmart-owned Flipkart, is looking to drive higher
average order values
(AOVs) and profitability by tapping into the parent platform's wider product catalogue, two senior company executives told ETtech.
The service currently operates 400
dark stores
across 17 cities, and aims to scale that to 800 by the end of this year, as Flipkart group CEO
Kalyan Krishnamurthy
indicated in April. 'Every category on the Flipkart Minutes is capable of being delivered within 10 minutes,' said Kabeer Biswas, vice president at Flipkart Minutes and founder of hyperlocal logistics startup Dunzo.
'The size and shape of each category differs, but most can be fulfilled within 10 minutes as consumer behaviour shifts,' he said. Biswas, who joined the company in January, after the cash-strapped Dunzo stopped operations, explained that delivery timelines vary by category definition.
Play Video
Pause
Skip Backward
Skip Forward
Unmute
Current Time
0:00
/
Duration
0:00
Loaded
:
0%
0:00
Stream Type
LIVE
Seek to live, currently behind live
LIVE
Remaining Time
-
0:00
1x
Playback Rate
Chapters
Chapters
Descriptions
descriptions off
, selected
Captions
captions settings
, opens captions settings dialog
captions off
, selected
Audio Track
default
, selected
Picture-in-Picture
Fullscreen
This is a modal window.
Beginning of dialog window. Escape will cancel and close the window.
Text
Color
White
Black
Red
Green
Blue
Yellow
Magenta
Cyan
Opacity
Opaque
Semi-Transparent
Text Background
Color
Black
White
Red
Green
Blue
Yellow
Magenta
Cyan
Opacity
Opaque
Semi-Transparent
Transparent
Caption Area Background
Color
Black
White
Red
Green
Blue
Yellow
Magenta
Cyan
Opacity
Transparent
Semi-Transparent
Opaque
Font Size
50%
75%
100%
125%
150%
175%
200%
300%
400%
Text Edge Style
None
Raised
Depressed
Uniform
Drop shadow
Font Family
Proportional Sans-Serif
Monospace Sans-Serif
Proportional Serif
Monospace Serif
Casual
Script
Small Caps
Reset
restore all settings to the default values
Done
Close Modal Dialog
End of dialog window.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
Conheça o óculos militar que os homens 40+ querem
Óculos Max
Saiba Mais
Undo
Kanchan Mishra, vice president at Flipkart, added that essentials like vegetables and dairy are low-value, and the platform's push into long-tail categories is key to improving margins. 'Profitability comes when your AOV hits a sweet spot, backed by strong daily order volumes per store. Long-tail items help lift AOVs and play a big role in customer retention and frequency,' she said.
On May 13, ETtech reported that
Flipkart is capping Minutes' rollout
to the top 8–10 cities to rein in cash burn. However, the rapid scale-up to 800 dark stores is among the fastest in India's quick commerce space, where rivals include
Blinkit
(Eternal),
Swiggy Instamart
, Zepto, and Tata Digital-backed
BigBasket
.
Live Events
Biswas said the service is also seeing traction in tier-II and tier-III cities, with expansion plans being evaluated on a quarterly basis. 'The plan is to reach 800 stores in relevant cities based on existing demand and to recalibrate every quarter. The ambition is larger, and right now we're doubling daily order volumes every 45 days,' he said.
Discover the stories of your interest
Blockchain
5 Stories
Cyber-safety
7 Stories
Fintech
9 Stories
E-comm
9 Stories
ML
8 Stories
Edtech
6 Stories
Flipkart rival
Amazon
has also begun
piloting quick commerce services
in Bengaluru via Amazon Now, as reported by ETtech.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
3 hours ago
- Time of India
10-minute delivery boom fuels hyperlocal warehousing surge in urban and tier-2 cities
HighlightsThe demand for hyperlocal warehouses in India is outpacing supply, driven by quick-commerce platforms such as Blinkit, Zepto, Swiggy Instamart, and BigBasket Now aiming to deliver products within 10-15 minutes. As quick-commerce companies expand, they are repurposing underutilized spaces like old neighborhood shops and defunct service apartments into efficient micro-fulfillment centers, which are essential for meeting the growing consumer demand for rapid delivery. Industry experts predict that India will require over 12 to 15 million square feet of small-format warehousing space in the next three years to support the projected growth of the quick-commerce sector, which is expected to reach $5.5 billion by 2025. The booming quick-commerce (Q-commerce) segment in India is fueling a rapid rise in demand for small, hyperlocal warehouses outstripping the supply. As platforms like Blinkit , Zepto , Swiggy Instamart , and BigBasket Now race to fulfill deliveries within 10-15 minutes, last-mile fulfillment centers—tucked into basements, small plots, and underutilized urban properties—are becoming critical infrastructure across metro cities and Tier-2 locations. According to experts, the demand is three times that of the new wave of hyperlocal warehouses—often no larger than 2,000 to 8,000 sq ft— located within dense residential neighborhoods. Additionally, underutilized spaces – such as old neighbourhood shops, defunct service apartments, and ground-floor office spaces – are being converted into highly efficient and profitable micro-fulfilment hubs. This 'The strategic repurposing allows the establishment of a dense network of hyper-local fulfilment centres, bringing inventory closer to the customer than ever before. This model not only optimizes delivery times to within minutes but also significantly reduces last-mile logistics costs, making quick commerce economically viable and scalable in densely populated urban environments,' said Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE The business model behind quick delivery is based on rapid inventory turnover and proximity to the customer base. As a result, companies are leasing multiple, small-format spaces instead of large centralized hubs. Each warehouse typically serves a radius of 2-3 km, enabling delivery within 10-12 micro-fulfillment centers stock fast-moving consumer goods (FMCG), fresh produce, snacks, and beverages that can be delivered within minutes of order placement. Additionally lack of financial visibility for landlord and large corporates are making it difficult to attract a complaint property. According to J P Morgan, Zomato-owned Blinkit and Swiggy Instamart are accelerating the pace of dark store network expansion, while the IPO-bound Zepto is slowing down. It had earlier said in 2024 that the total count of dark stores will reach 700 March 2025. A recent research note from a global brokerage firm said that both Blinkit and Instamart added over 150 dark stores during the January-February period, while Zepto experienced a slowdown in its dark store additions. The brokerage estimates that Blinkit currently operates the largest dark store network in the country, with approximately 1,229 stores, surpassing Zepto, which has 1,147 dark stores. Additionally, these companies have reportedly reduced the average delivery time to under 10 minutes in over 70% of their active zones. 'Q-commerce companies are not just tenants anymore; they are now driving demand and influencing micro-markets,' says Vijay Ganesh, Managing Director, Industrial & Logistics Services, Colliers India . 'We are witnessing increased lease activity in areas like Andheri (Mumbai), Koramangala (Bengaluru), and Kukatpally (Hyderabad), where even ground-floor retail and idle parking spaces are being converted into dark stores.' While metros remain the hotbeds of Q-commerce activity, the next wave of growth is firmly taking root in Tier-2 cities such as Jaipur, Coimbatore, Nagpur, Lucknow, and Surat. Improved digital penetration, rising disposable income, and consumer demand for convenience are driving expansion beyond the traditional top six cities. Coimbatore and Indore are seeing a spike in short-term leases for 1,500–3,000 sq ft units. These aren't just warehousing deals—they are hybrid agreements with retail landlords looking for steady rentals in high-footfall areas. Local developers and real estate investors in these cities are increasingly converting underutilized properties into rentable dark store formats. In Jaipur, for example, a former banquet hall near Mansarovar was recently repurposed into a 24/7 fulfillment hub for a grocery delivery firm, generating a 20% higher rental yield than its previous use. As India's first integrated supply chain infrastructure platform, IndoSpace has set up its first such format–INLOGIS Chembur—a 150,000 sq. ft in-city warehousing hub in Mumbai. IndoSpace is scaling this model across major metros to unlock proximity, reduce delivery times, support hyperlocal fulfilment, and power the future of last-mile logistics. ' 'Designed for high-efficiency delivery with features like cargo elevators, EV charging, and solar panels, it caters to the surging quick commerce market projected to triple by 2027. With unit sizes from 5,000 to 35,000 sq. ft, INLOGIS enables rapid service to over half of Mumbai', said a source. The rise of hyperlocal warehousing is also subtly impacting rental dynamics in urban pockets. Rents for ground-floor spaces in residential-commercial mixed-use zones have jumped by 10-18% in key micromarkets since 2023, according to Knight Frank. 'We believe the future of urban logistics lies in Grade-A in-city warehousing and micro fulfillment centers,' said Vamsi from Sumadhura. 'With the Q-commerce boom driving demand for over over 10 dark stores per cluster in some metros, there's a clear need for optimized, compliant, and scalable urban logistics hubs. We are seeing strong traction for shared 3PL platforms, and our goal is to build flexible, multi-tenant spaces that enable this shift. By embedding hygiene, safety, and automation-readiness from day one, we aim to offer long-term value to operators. Our investment case shows these hubs can deliver returns on par with top-tier commercial assets,' Vamshi Karangula Vice President Sumadhura Group According to experts, demand for hyperlocal warehouses is poised to grow in tandem with the Q-commerce sector, which is projected to reach $5.5 billion by 2025, according to RedSeer Consulting. Industry estimates suggest that India may require over 12–15 million sq ft of small-format warehousing space in the next three years to meet delivery demand from urban and Tier-2 consumers. For developers, especially in land-constrained metros, this opens up a new monetization avenue. Even older commercial buildings, retail stores, and standalone houses can be repositioned as revenue-generating micro-hubs. 'Dark stores thrive on speed and efficiency, typically holding just 2–3 days of inventory to meet rapid order turnover. Their ability to pay higher rentals is driven by location—delivery time and household reach matter more than size. With limited organized supply, many are set up in repurposed residential, retail, or workshop spaces across cities,' said Chandranath Dey , India Head - Operation & Business Development, Logistics & Industrial, JLL. As the 10-minute delivery race heats up, India's real estate sector is not just enabling the change—it's being transformed by it. Quick-commerce platforms initially focused on groceries, fresh produce, and essentials are now diversifying their offerings to include electronics and personal care items, among other products."
Time of India
4 hours ago
- Time of India
Meesho's reverse flip may conclude this week; likely to file IPO papers this month, say sources
Ecommerce marketplace Meesho could see the process of its redomiciling from the US to India conclude as early as this week, paving the way to file draft papers for its initial public offering (IPO) this month, people in the know said. The Bengaluru-based company is targeting a $700-800 million IPO, but the issue size and the timelines could change depending on the market conditions, one of the persons said, adding that Meesho is likely to file under the Securities and Exchange Board of India's (Sebi) confidential route. 'Meesho's flip back process will close in a few days, and it will be ready to file its IPO papers as early as next week, but that could get stretched to sometime later this month,' the person said. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Villa For Sale in Dubai Might Surprise You Villas in Dubai | Search ads Learn More Undo The company, which is backed by the likes of SoftBank , Tiger Global , and Prosus, earlier this week converted itself to a public entity – a key step that firms take on their path to going public. Once the redomiciling is completed, Bengaluru-based Meesho Ltd will become the parent entity. Meesho had applied to seek the National Company Law Tribunal's (NCLT) approval for a reverse merger in January. Meanwhile, it closed a $550 million funding round that saw new investors such as Tiger Global, Mars Growth Capital and Think Investments join its cap table. This transaction, which was largely a secondary deal, valued the company at around $3.9-4 billion, which was a slight discount from its peak valuation of $5 billion. Live Events Kotak Mahindra Capital, Citi, JP Morgan, and Morgan Stanley as merchant bankers for Meesho's public issue. Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories Meesho declined to comment on the development. The company's ecommerce sector rival, Walmart-owned Flipkart, is also working on its redomiciling from Singapore to India ahead of a planned IPO in 2026. Once it files, Meesho will join a list of new-age companies that are looking to go public this year. This includes edtech platform PhysicsWallah, at-home services firm Urban Company, ecommerce shipping startup Shiprocket , wearables brand Boat and wealthtech company Groww. Shiprocket, Boat, and Groww have filed their papers under Sebi's confidential route, which allows companies to delay the public disclosure of certain information, such as the company's latest financials and details of the issue. The development of Meesho's plan to file its prospectus was first reported by Bloomberg. In March, Meesho released its annual report, saying it recorded a 34% year-on-year (YoY) growth in orders during the April-December 2024 period, at 1.3 billion. This equalled the number of orders it clocked over the whole of fiscal year 2024. As of December 31, the company had 187 million unique annual transacting users — a 26% increase from the same period in the previous year. A March report by brokerage CLSA noted that Meesho is currently at a gross merchandise value (GMV) run rate of $6.2 billion, and is estimated to grow at a compound annual growth rate (CAGR) of 26% for the next six years. The research note estimated Meesho's market share at 37% in terms of the number of orders for the calendar year 2024. However, in terms of GMV, its market share was around 8.5%, CLSA said. Over the last 12-18 months, it also introduced Meesho Mall—a brand-focussed offering where it charges a commission from listed firms on the marketplace. It doesn't charge any fee from sellers on its main marketplace and generates revenue through advertising and offering logistics services. It has also scaled up its in-house logistics offering, Valmo, which now accounts for more than 50% of the orders on Meesho's marketplace.
&w=3840&q=100)
Business Standard
5 hours ago
- Business Standard
Flipkart CEO joins delivery run as firm scales quick-commerce push
Flipkart is stepping up its push into quick commerce as it looks to take on entrenched rivals such as Blinkit, Swiggy Instamart, and Zepto. The Walmart-owned e-commerce firm is deepening its focus on fresh produce and direct sourcing, aiming to build an edge in speed, quality, and supply chain control. Group Chief Executive Kalyan Krishnamurthy recently donned the role of a Flipkart Wishmaster—its in-house delivery personnel—for a day, highlighting the company's intensified efforts to scale Flipkart Minutes, its rapid delivery unit. He was joined by Kabeer Biswas, vice-president of Flipkart Minutes, during a visit to Malur, a key sourcing hub near Bengaluru. The executives met local farmers who supply produce daily to Flipkart's fulfilment centres, as part of a direct-from-farm sourcing strategy that Flipkart says ensures freshness while supporting smallholder incomes. Among them was a veteran cultivator with 17 years' experience growing capsicum and cucumbers on a four-acre plot, and Padma, a farmer growing coriander, methi, and palak on her three-acre farm for over a decade. 'Following their interactions at the hub, Krishnamurthy and Biswas surprised a few customers by stepping into the role of Wishmasters today, delivering fresh produce to select customers in Bengaluru, including Boganahalli and Bellandur, in a matter of minutes,' the company said. Flipkart's farm partnerships signal a broader ambition: to create an integrated agri-supply chain that supports inclusive growth while sharpening its competitive position in India's booming quick commerce segment. The e-commerce firm is accelerating efforts to position itself as a serious contender in the ultrafast delivery race. It is expanding Flipkart Minutes, with the service doubling its business every 45 days and aiming to operate 800 dark stores across the country by the end of the year. As rivals Blinkit, Swiggy Instamart, and Zepto focus largely on urban consumers, Biswas recently said in an interview that Flipkart Minutes' strategy hinges on scale, speed, value, and deep penetration into tier-2 and tier-3 cities. The company is leveraging its existing logistics and supply chain infrastructure to deliver groceries, daily essentials, and other products within 10 to 15 minutes. 'The value we can deliver per transaction is fundamentally what differentiates us from the competition,' Biswas, vice-president at Flipkart Minutes, told Business Standard recently. 'Given our size and the scale of the business, our ability to deliver value to customers is significantly greater than anybody else's.' According to Biswas, consumer expectations are shifting, with demand for fast delivery expanding beyond groceries and daily essentials. Flipkart's quick-commerce business, launched just 10 months ago, is now present in 17 cities—including metros and locations such as Ghaziabad, Faridabad, Guwahati, Jaipur, Kanpur, Lucknow, and Thane. Amazon has also entered the space with its own offering, Amazon Now. Analysts estimate Flipkart and Amazon may each need to invest at least $1 billion over the next few years to scale their quick-commerce operations and close the gap with rivals. Blinkit currently leads with 1,301 dark stores, followed by Swiggy Instamart with 1,021, and Zepto with over 750. $1 trillion opportunity Kathryn McLay, president and chief executive, Walmart International, recently noted that India, home to 1.4 billion people, represented a major opportunity in e-commerce. India's internet economy is estimated to reach $1 trillion by 2030, driven primarily by e-commerce. Yet online penetration remains relatively low at just 9 per cent, highlighting the headroom for growth. To tap this opportunity, Walmart is continuing to build its Flipkart business, with ongoing investment in both established channels and newer retail formats. In recent years, McLay said, quick commerce had emerged as a major trend in India, defined by delivery times of 15 minutes or less. Recognising this shift, Flipkart has developed what it calls its 'Minutes business', specifically designed to enable delivery within this new, accelerated timeframe. The company has established 250 fulfilment centres to support this model, marking a significant transformation from its previous one-to-two day delivery promise just a year ago. Today, Flipkart can deliver some orders in as little as three minutes, showcasing remarkable operational speed and agility. Quick commerce now accounts for around 20 per cent of the e-commerce market in India and is experiencing a 50 per cent annual growth rate. While Flipkart continues on its path to profitability with its core business, McLay said the firm was investing in emerging areas such as quick commerce as part of its broader growth strategy. When the rise of quick commerce became evident, McLay said Flipkart CEO Kalyan Krishnamurthy referred to Walmart's operations in China—specifically the cloud-based fulfilment model used by Sam's Club, where 1,000 SKUs (stock-keeping units) are delivered in under an hour. Flipkart sent a team to China to study this model, which provided insights into optimising fulfilment for speed. Based on that experience, Flipkart aimed to improve the model by scaling up to 6,000 SKUs delivered in less than 15 minutes. 'When we saw the rise in quick commerce, our CEO of Flipkart asked me: where can I learn across Walmart Enterprise about speed? And I pointed him to China,' recalled McLay.
